Captains of Industry Forum 2016 DLA Land and Maritime ... · 2016 DLA Land and Maritime Supplier...

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DEFENSE LOGISTICS AGENCY AMERICA’S COMBAT LOGISTICS SUPPORT AGENCY

Captains of Industry Forum 2016 DLA Land and Maritime

Supplier Conference

WARFIGHTER FIRST • PEOPLE & CULTURE • STRATEGIC ENGAGEMENT • FINANCIAL STEWARDSHIP • PROCESS EXCELLENCE

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Purpose Statement

• DLA Land and Maritime focus is on implementing the tenets of Better Buying Power (BBP)

• Share information on three relevant strategic sustainment topics

• Discuss potential solutions to ensure cost effective Warfighter support

• Networking Reception follows COI Forum in Exhibit Hall from 4:00 - 5:30 PM


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Agenda • Welcome and Introductions • Strategic Topics

– Cyber Security • Collective actions necessary to secure our supply chains

– Future Sustainment Requirements for our Military Service customers

• Overviews of Land-based and Sea-based forces

– Cost and Pricing / Commerciality Determinations • Commercial Item / Market Pricing • Certified Cost or Pricing Data (CCPD) • Opportunities to improve cycle-time

• Open Discussion / Amphenol Update WARFIGHTER FIRST • PEOPLE & CULTURE • STRATEGIC ENGAGEMENT • FINANCIAL STEWARDSHIP • PROCESS EXCELLENCE


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Cybersecurity “A Collective Effort”

COI Meeting Linus Baker August 2016

Agenda

• Enabling and fostering information sharing

– Supply Chain (e.g., commodity) specific collaboration – Communities of Interest

• Defining cyber defense standards for industrial base partners (e.g., DFARS clauses, NIST SP 800-171, DIBNet cyber incident reporting)

• Encouraging private sector efforts to promote general awareness, education, and training

• Promoting a strong cyber workforce within industry and government

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Enabling and Fostering Information Sharing

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Cybersecurity Information Sharing Act of 2015 is intended to have private industry share information with the federal government about hackers and cyber intrusions so they can all be more adept at thwarting network attacks

Cybersecurity information sharing is currently limited to a select few sharing programs, e.g., DOD-Defense Industrial Base Collaborative Information Sharing Environment (DCISE), or between small networks of companies that trust each other. Instead of limited and fragmented information sharing, an ideal cybersecurity approach would foster trusted and widespread sharing.

Appropriate classification of information and providing more clearances to appropriate personnel in the private sector.

The government must be compelled to share information and intelligence with the private sector much more quickly and completely than it currently does

Defining Cyber Defense Standards

7 DFARS Clauses/Contractual Requirements

Prioritize supply chain related risks and address applicable cybersecurity concerns with industry partners

Security control implementation Blue Team/Penetration Testing 3rd Party Assessors

Assurance of Key Terrain in Cyberspace

Awareness, Education, and Training

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There must also be a viable program of professional base-level training that is encouraged for the

general non-IT workforce. Nearly

every job now involves the use of digital devices in

some aspect of work.

These cyber “survival skills” should employ

a dynamic curriculum,

developed by the private sector, which keeps the workforce current and prevents it from being easily

victimized.

Promoting a Strong Cyber Workforce

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Increase the number of IT professionals with security

certifications

•Information-security certifications like the Certified Information Systems Security Professional (CISSP) and the Certified Information Security Manager (CISM) represent the minimum level of training that a cybersecurity professional needs

Develop more IT leaders with cybersecurity

expertise

Achieving the workforce needed

requires the U.S. to more effectively

leverage its cybersecurity

personnel

•requires issuing more security clearances as appropriate and emphasizing cyber certification and credentialing programs

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Questions/Discussion


WARFIGHTER FIRST • PEOPLE & CULTURE • STRATEGIC ENGAGEMENT • FINANCIAL STEWARDSHIP • PROCESS EXCELLENCE 11

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Maritime Future Requirements 2016 Captains of Industry

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2016 CNO Guidance

“Increase the volume and range of interaction with commercial industry.

Seek opportunities through non-traditional partners.”

“Expand and strengthen our network of partners”

Mission: “….. Our Navy will protect America from attack and preserve America’s strategic influence in

key regions of the world…..”

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Supporting the Maritime Domain

21st Century Seapower Force Design: Build and maintain a Fleet of 300 ships • Balanced force of submarines, aircraft carriers, amphibious ships and surface

combatants: Multi-mission capabilities • Control lifecycle costs: Open Systems Architecture • Balance acquisition and maintenance to insure viability of the industrial base

The National Fleet Plan Integrated Logistics: Achieve commonality and interoperability • Utilize DLA as a responsive and cost effective source of supply • Material planning and procurement back into organic commands

• Virginia Class (SSN) • Littoral Combat Ship (LCS) • Arleigh Burke Destroyers (DDG)

• Ticonderoga Cruiser (CG) Modernization

• Ballistic Missile Defense (BMD)

Fleet Focus

Increasing Operational Tempo: Robust and integrated logistics is a force multiplier

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Fleet Maintenance Trends

1. Increase in shipyard schedules beyond capacity

2. Multi-Ship Multi-Option (MSMO) transition to Multiple Award, Multiple Option Contract (MACMO) Increases organic material management

3. Littoral Combat Ship (LCS) CNO review completed Formation of maintenance execution team Increase reliance on organic maintenance & material

management

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Land Future Requirements 2016 Captains of Industry


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LAND FORCES TODAY as of 12 AUG 16

- Afghanistan: 7,500 - Iraq: 4,657 - Kuwait: 10,800 - SPMAGTF-CENT: 2,300 - 13th MEU: 2,200

CENTCOM - SPMAGTF-Africa: 1,100

AFRICOM

Major Deployments

PACOM - Korea: 4,700 (rotational ABCT) - 31th MEU: 2,200 marines

- Europe: 4,700 (rotational ABCT) - Black Sea Force: 265 marines

EUCOM

Pacific Pathways

Currently Deployed 2 x ABCTs 3 x IBCTs 4 x MEUs

*40,400 total ground forces

Inherent Resolve

Atlantic Resolve

Freedom’s Sentinel

ARFORGEN Sustainable Readiness Model (SRM)

SRM = “remaining ready all of the time” – GEN Robert Abrams FORSCOM Commanding General

18 18 DLA Needs Industry’s help to reduce lead times

LETTERKENNY (LEAD) • Patriot Launcher &

Radar • Sentinel • Avenger • RCV, RG-31 • Panther

RED RIVER (RRAD) • M-ATV • MRAP, MAXXPRO • Cougar • HMMWV • Bradley • Track Shoes

WATERVLIET (WVA) • 60mm M225A1 Cannon • 60mm M8A1 Baseplate • 120mm M256 Breech

Block

MARINE CORPS MAINTENANCE CENTER BARSTOW • AAV • LAV • LVSR • M777 Howitzer • M88 Recovery Vehicle • MRAP Cougar & MATV

MARINE CORPS MAINTENANCE CENTER ALBANY • AAV • LAV • LVSR • MRAP, Cougar • Road Grader

TOBYHANNA (TYAD) • AN/TSQ-T10 • Trailer Mounter

Support System • AN/VLQ-12 (V3) Crew

Duke • AN/TPS-75 Radar

System

ANNISTON (ANAD) • M1 Abrams • AVLB • ABV • Paladin • Stryker • Small Arms

ROCK ISLAND (RIA) • Mount Machine

Gun, M66 • MRAP Door

Hatch • M119 Recoil

System

SIERRA (SIAD) • HMMWV Frag 7

Kits • M3 CROP Reset • 500 & 600 gal

TPU • TWPS • MRAP Armor

Kits

• ~90% of Depots’ Parts Needs are: ‒ Lower/Intermittent Demand Items ‒ Non-Business Drivers to DLA business model

• Uncertain/Untimely Funding

• Rising backorders/Line-Stoppers ‒ Customer Wait Times Too Long

• Challenged Forecasting ‒ Accuracy & Buyback, Timeliness,

Army Supply Plan

Army and USMC Industrial Activities

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WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT 19 WARFIGHTER FIRST • PEOPLE & CULTURE • STRATEGIC ENGAGEMENT • FINANCIAL STEWARDSHIP • PROCESS EXCELLENCE

Pricing Topics COI Meeting

Edward Wingo August 2016

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Agenda

• Commercial Item / Market Pricing

• Certified Cost or Pricing Data (CCPD)


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Commercial Spend Data

DLA Land and Maritime: • FY15: $750 Million spent procuring items

determined commercial (21% of dollars; 26% of total actions)

• FY16 YTD: $534 Million spent procuring items determined commercial (18% of dollars; 24% of actions)


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Benefits of Large/LTC Commercial Acquisition Procedures

• Lead time to Contract Award is reduced – Average award time of 227 days without

CCPD – Average award time of 377 days with CCPD

• Market Competition Sets the Prices


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Evidence of Commerciality

Demonstrate that the product being offered is sold in the commercial marketplace Information such as:

• Non-redacted invoices of sales to non-Government customers for commercial purposes

• Similar item(s) that are sold commercially

• Catalog or published prices – Commercial offerings with actual sales history


INVOICE CATALOG

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Certified Cost or Pricing Data Issues

• Incomplete cost data packages – 75% of packages received are inadequate

(cannot forward for field work until data is adequate)

• Unable to get cost data – Proprietary cost data – Slow vendor response to pricing data

requests – Vendors unwilling to provide additional

information on subcontractor costs


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Opportunities for Improvement

• Preproposal Conferences – Contractor, DLA L&M, DCMA and/or DCAA

• Respond timely to requests for information

• Submit complete cost data package – Proposal Adequacy Checklist – Make contact as needed

• Submit adequate supporting data for commerciality (i.e. Invoices)


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QUESTIONS/DISCUSSION


• Critical Component Sourcing Delinquent Testing

• Stop Shipment on 8 Specifications

• Identified Unapproved Parts

• Approved New Sources

• 12,000+ Standardization Documents • 218 Qualification Documents • Oversee over 700 Companies and

115 Test Labs

• Validate QPL Audit Database • Maintenance of Database • Retrain Associates • Create Additional Metrics • Assess Manpower Requirements • FY16 Focus–Audits/Qualification Reports • FY17 Focus–100% disposition of

Retentions

Connector Stop - Shipment

Status Process Improvements

Scope Amphenol Background

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WARFIGHTER FIRST • PEOPLE & CULTURE • STRATEGIC ENGAGEMENT • FINANCIAL STEWARDSHIP • PROCESS EXCELLENCE 28

Captains of Industry Forum 2016 DLA Land and Maritime ... · 2016 DLA Land and Maritime Supplier...

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